Domestic indices continue to trade in green in late morning deals

Domestic equity indices continued to trade in green with marginal gains in late morning deals tracking positive cues from the some other Asian markets. Buying in Tech Mahindra, Larsen & Toubro, TCS, Nestle and Titan companies’ stocks helped the markets to trade above neutral lines. Meanwhile, broader indices were also trading in green. Traders were getting encouragement as Consumer Price Index (CPI)-based headline retail inflation in India eased to a 12-month low of 4.75 per cent in May on the back of a softening core and fuel inflation. Besides, foreign fund inflows also aided domestic sentiments. Foreign institutional investors (FIIs) were net buyers of stocks worth Rs 426.63 crore on June 12.

On the global front, Asian markets were trading mostly in green after the U.S. Federal Reserve held the federal funds rate at 5.25% to 5.5%, and shifted its “dot plot” to project only one rate cut this year. This was down from the three cuts projected in its March meeting. However, the dot plot also indicated a more aggressive cutting path for 2025 - four rate cuts totaling a full percentage point are anticipated, up from three. Back home, on the BSE sectoral front, traders were seen pilling up position in Realty, IT, TECK, Consumer Durables and Capital Goods, while selling was witnessed in Utilities, Telecom, Metal, PSU and Power. 

The BSE Sensex is currently trading at 76755.77, up by 149.20 points or 0.19% after trading in a range of 76719.70 and 77145.46. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.32%, while Small cap index up by 0.20%.

The top gaining sectoral indices on the BSE were Realty up by 1.94%, IT up by 1.13%, TECK up by 0.67%, Consumer Durables up by 0.61%, Capital Goods up by 0.57%, while Utilities down by 0.76%, Telecom down by 0.51%, Metal down by 0.48%, PSU down by 0.46% and Power down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 1.69%, Larsen & Toubro up by 1.44%, TCS up by 1.29%, Nestle up by 1.15% and Titan up by 1.00%. On the flip side, Power Grid Corp down by 1.14%, Hindustan Unilever down by 1.11%, Tata Steel down by 0.77%, NTPC down by 0.70% and JSW Steel down by 0.69% were the top losers.

Meanwhile, India’s industrial production growth measured in terms of the Index of Industrial Production (IIP) slipped to 3-month low of 5 per cent in April 2024, as compared with a revised estimate of 5.4% in March, mainly due to poor show by the manufacturing sector, though mining and power segments performed well. Factory output growth was 5.6 per cent in February 2024. The previous low of IIP was recorded at 4.2 per cent in January, 2024. The IIP growth rate was recorded at 4.6 per cent in April 2023. For the month of April 2024, the Quick Estimates of IIP with base 2011-12 stood at 147.7 against 140.7 in April 2023. For the fiscal 2023-24, IIP growth was 5.9 per cent against 5.2 per cent in the preceding financial year.

As per the latest data, the mining output growth accelerated to 6.7 per cent in April against a 5.1 per cent expansion in the year-ago month. The manufacturing sector’s growth decelerated to 3.9 per cent in April compared to 5.5 per cent a year ago. The power generation increased by 10.2 per cent in April against a contraction of 1.1 per cent in the same month of the last year. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of April 2024 stood at 130.8, 144.2 and 212.0 respectively.

As per use-base classification, the output of primary goods logged a 7 per cent growth in April this year, up from 1.9 per cent a year earlier. The capital goods segment growth fell to 3.1 per cent in April 2024 from 4.4 per cent in the year-ago period. The expansion in the intermediate goods segment was 3.2 per cent in the month under review, higher than the 1.7 per cent recorded in the same period a year ago. Infrastructure/construction goods reported a growth of 8 per cent in April 2024 against a 13.4 per cent expansion in the year-ago period. In April this year, consumer durables output expanded 9.8 per cent. It had contracted by 2.3 per cent in April 2023. Consumer non-durable goods production contracted by 2.4 per cent during the reporting month as against a growth of 11.4 per cent in April 2023.

The CNX Nifty is currently trading at 23357.80, up by 34.85 points or 0.15% after trading in a range of 23353.90 and 23481.05. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 3.43%, HDFC Life Insurance up by 3.30%, LTIMindtree up by 2.00%, Tech Mahindra up by 1.61% and Shriram Finance up by 1.48%. On the flip side, Eicher Motors down by 1.24%, Power Grid down by 1.14%, Hindustan Unilever down by 1.10%, Coal India down by 1.00% and Tata Consumer down by 0.89% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 80.5 points or 0.45% to 18,018.34, Jakarta Composite gained 15.33 points or 0.22% to 6,865.43, Straits Times rose 20.2 points or 0.61% to 3,327.64, KOSPI increased 32.88 points or 1.21% to 2,761.05 and Taiwan Weighted added 251.45 points or 1.14% to 22,300.41. However, Shanghai Composite weakened 3.8 points or 0.13% to 3,033.67 and Nikkei 225 slipped 156.85 points or 0.4% to 38,719.86.